5 Common Mistakes Small Business Owners Make

Every small business owner will recognise at least a few of these as issues they’ve had to deal with in the past.

Let’s face it, we’ve all been there.

Dropped the ball on something simple. Made a right cock up.

It happens, mistakes are an important part of business and life, and they help us to learn.

Let’s look at 5 common mistakes that small business owners make, and how to fix them.

1. Money, money, money.

It often seems like the most important part of running a business is keeping track of all the money that you’re earning and spending, but you’d be surprised how easy it is to lose track. Simple stuff like not being prepared for tax bills or not planning for slow months can massively affect your cash position.

Too many small business owners try and do everything themselves, including all the financials. But let’s face it, you're probably not an accountant, or even a very good book keeper.... And that's ok..... So let's let a professional deal with that sort of stuff.

 Consider:

· Hire someone with accounting/bookkeeping experience.

· Use one of the software platforms (Quickbooks/Sage/Xero) that help you keep track of your finances.

· Get some training that will help you understand the money side of your business.

2. Marketing

For many small businesses, marketing has a strong push at the start because you tell everyone what you are doing. This slowly disintegrates until you’re just doing the same old things, you’re not really seeing any progression, and you’re in a bit of a rut.

Consider:

· Have someone do a bit of market research regularly. Hire someone freelance if you can’t take another person on, or just delegate it to another team member. It’s so important to keep up to date with trends, target audiences, and what your competition are doing.

· Figure out what the best marketing method is for your company. Print is great for older customer demographics, where social media marketing appeals to the younger generation. Think about paid ads, creating content on Facebook/Instagram, SEO, etc.

· Keep up to date with your competition. You need to be in the loop about new services or products that they’re offering, and you’re not. Think about where they’re picking up new clients, and where they’re spending their marketing budget.

3. Customer Service

It sounds like such a simple task, to keep your customers happy, but it isn't. They’ll put you through your paces, and its hard to always have to be professional, but its all worth it for those long-term clients who give you a regular and repeat sales.

Consider:

· Offering your longer term or repeat customers exclusive offers so that they feel appreciated.

· Encouraging customers to leave reviews or provide referrals for your company, this will showcase the good relationships you have with your customers and bring in new business.

· All customers appreciate products and services to be delivered in a timely manner, make sure your business reflects this, show that you’re punctual, dedicated and happy to go the extra mile.

4. Pricing

Its very difficult to figure out what your price is going to be for your product or service, no matter what kind of business you’re in. Its hard to work out how much to charge; you need to be keeping in mind all of your costs, including materials, labour costs, postage and packing, how long it will take, etc.

Consider:

· Looking at the prices of the competition. Is your service or product different, better or worth more than theirs? Why? Is that a unique selling point?

· Calculating an average price taking into account the costs of materials, labour, and time.

· Talk to your customers. How much would they be willing to pay?

5. Not Asking For Help

This is one of the most important mistakes a small business owner will make. Delegating is not a dirty word, and neither is assistance. You’re gonna try and do everything yourself, you’re gonna end up in way over your head, and you won’t know what to do. It’s sink or swim, and the water’s rising. What do you do? You ask a passerby for a floaty. It’s not a bad thing to ask for help, it’s the smart thing to do.

Consider:

· Seek advice from people who have been there, made the mess, and found a way to sort it.

· Read some books to help expand your knowledge of owning and running a small businesses.

· Reach out to us here at SME Success - this is exactly what we do....

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